Which of the following correctly describes the relationship between the marginal cost and average variable cost curves?
a. MC is everywhere above AVC
b. AVC is everywhere above MC
c. MC crosses AVC at AVC's minimum point
d. MC crosses AVC at MC's minimum point
e. both AVC and MC first rise and then fall
C
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
In reference to determining the optimal amount of advertising, managers of trade associations face each of following additional challenges except which one?
A) the challenge of a constant marginal benefit of advertising across firms B) the free rider problem C) difficulty in prescribing a fair and practical way to share the cost of advertising across firms D) difference in the marginal benefits of advertising across firms
What is a location rent? Give an example of a location rent
If you got a new job and moved to Dale, Indiana (population 1,500), you would expect to find two grocery stores. The market form is
A. oligopoly. B. monopoly. C. monopolistic competition. D. perfect competition.